The benchmark indices maintained an upward bias with volatility on June 5, rising a tad more than half a percent ahead of the outcome of the RBI MPC policy meeting due on June 6. Market breadth remained positive, with about 1,549 shares advancing compared to 1,038 shares under pressure on the NSE. The RBI interest rate decision may provide direction to the market in the upcoming session. Below are some short-term trading ideas to consider:
Om Mehra, Technical Research Analyst at Samco Securities
Info Edge (India) | CMP: Rs 1,474.4
Info Edge witnessed a sharp rebound in the last session, gaining 4.52 percent. The stock formed a wide bullish candle and recorded its highest single-day gain in recent times, reflecting a strong recovery from the lower Bollinger Band. This bounce comes after a series of subdued sessions and suggests a reversal from short-term weakness.
The stock has reclaimed both the 20-day and 50-day moving averages. The Bollinger Bands indicate a shift from the lower band toward the mean and upper band, hinting at further upside expansion. Volume also spiked significantly, surpassing recent averages, confirming active participation and conviction in the rebound.
The RSI has turned decisively upward, now standing at 56 after holding near the 50 zone for several days. Meanwhile, the MACD is on the verge of a bullish crossover, with the histogram shrinking on the negative side and the fast and slow lines converging steadily. This development could mark the beginning of a fresh upward leg if follow-through buying sustains.
If the stock manages to sustain above Rs 1,480 in the coming sessions, a short-term breakout above the previous swing high near Rs 1,515 cannot be ruled out.
Strategy: Buy
Target: Rs 1,570
Stop-Loss: Rs 1,425
DLF | CMP: Rs 825.70
DLF has delivered a decisive breakout above the Rs 791.10 resistance zone. The breakout is accompanied by a significant rise in volume—marking the highest participation in recent weeks—and confirms strong buying interest. This move follows a well-defined rally over the past month, and the stock structure now indicates a continuation of the ongoing uptrend.
The RSI stands at 75, signalling strong momentum and showing no signs of reversal. The MACD remains firmly in bullish territory, with the fast line well above the signal line and the histogram expanding steadily—indicating trend strength and sustained upside potential.
The stock is now trading comfortably above the VWAP (volume-weighted average price) and all key moving averages, while the previous resistance near Rs 790 is likely to act as immediate support in the event of any pullbacks.
Strategy: Buy
Target: Rs 890
Stop-Loss: Rs 790
KPR Mill | CMP: Rs 1,143
After marking a new high, KPR Mill entered a healthy pullback phase but is now showing signs of recovery. It has formed a base and is sustaining above the 9 EMA, with the last two sessions reflecting renewed positive momentum.
The earlier breakout zone is being retested as a support base—a classic bullish continuation setup. The stock continues to trade above key moving averages, and the Supertrend indicator remains in a buy mode, reinforcing a positive undertone.
The broader trend structure of higher highs and higher lows remains intact, and the recent decline appears corrective rather than a trend reversal. Momentum indicators are gradually stabilizing. The RSI has turned upward from the 50–52 zone and currently stands at 53.55, indicating improving strength. The MACD is also showing early signs of convergence, and a bullish crossover could confirm the resumption of upward momentum. A move above Rs 1,152 in the coming sessions may reignite momentum toward higher levels.
Strategy: Buy
Target: Rs 1,220
Stop-Loss: Rs 1,088
Chandan Taparia, Head Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services
Fortis Healthcare | CMP: Rs 754.75
Fortis Healthcare has broken out of a consolidation zone on the daily chart, supported by higher-than-average traded volumes. Broad-based buying interest in the pharma sector further reinforces the bullish outlook. Additionally, the ADX (Average Directional Index) line is rising, indicating strength in the ongoing uptrend.
Strategy: Buy
Target: Rs 787
Stop-Loss: Rs 738
L&T Finance | CMP: Rs 183.36
L&T Finance has given a breakout from a pennant pattern with a strong bullish candle and a notable surge in volumes. The stock continues to respect its 50-day exponential moving average, with dips being bought into. A bullish MACD crossover further supports the upward momentum.
Strategy: Buy
Target: Rs 192
Stop-Loss: Rs 178
Hindustan Zinc | CMP: Rs 491.6
Hindustan Zinc has broken out of a symmetrical triangle and moved above its 200 DEMA, signalling a potential trend reversal to the upside. A rising RSI, especially after a breakout, suggests increasing buying interest and the potential for further gains. The volume during the breakout was also notably higher than average, lending credibility to the move.
Strategy: Buy
Target: Rs 520
Stop-Loss: Rs 480
Mandar Bhojane, Equity Research Analyst at Choice Broking
Computer Age Management Services | CMP: Rs 4,248.3
CAMS has recently broken out of an ascending triangle pattern with a strong bullish candle supported by heavy volumes, signalling fresh buying interest. This breakout suggests a likely continuation of the uptrend, provided the stock sustains above the key level of Rs 4,280. Momentum indicators align with the bullish bias—RSI is at 70 and trending higher, while the Stochastic RSI indicates a positive reversal, reflecting underlying strength.
On the upside, CAMS may rally toward immediate targets of Rs 4,500 and Rs 4,600 if the breakout sustains. Resistance levels to monitor are Rs 4,350 and Rs 4,400, where short-term traders may consider partial profit booking. On the downside, immediate support zones are seen at Rs 4,200 and Rs 4,100, offering attractive buy-on-dips opportunities for positional traders during any short-term pullbacks.
Strategy: Buy
Target: Rs 4,500, Rs 4,600
Stop-Loss: Rs 3,900
Jindal Stainless | CMP: Rs 673.5
Jindal Stainless is currently poised near a breakout from a descending trendline on the daily chart. The price action indicates healthy consolidation just below the breakout zone, suggesting accumulation and reduced selling pressure. A decisive close above Rs 675, backed by strong volumes, will confirm the breakout and potentially trigger the next leg of the uptrend.
The stock is trading well above its key exponential moving averages—20, 50, 100, and 200-day—indicating strength across short-, medium-, and long-term timeframes. Momentum indicators support the bullish setup: the daily RSI is at 62.86 and trending upward, reflecting rising strength without entering overbought territory. This alignment of price and momentum suggests the potential for sustained upward movement.
From a trading perspective, a buy-on-dips approach near the Rs 660 support zone could offer a favourable entry with a positional stop-loss at Rs 625. On the upside, once the breakout is confirmed, the stock has the potential to move towards Rs 760 and beyond, offering an attractive risk-reward setup for positional traders.
Strategy: Buy
Target: Rs 760
Stop-Loss: Rs 625
Power Grid Corporation of India | CMP: Rs 294.25
Power Grid Corporation has recently formed a falling channel pattern, with the price now consolidating near the upper resistance zone—indicating a potential breakout. The price action is supported by rising volumes, signalling fresh buying interest and strengthening the bullish bias. A sustained move above Rs 295 will likely confirm the breakout and open the door for further upside.
Momentum indicators support the bullish setup. The RSI is trending higher, currently near 60, and the Stochastic RSI shows a positive crossover, suggesting increasing strength and momentum in the stock. On the upside, immediate targets lie at Rs 305 and Rs 310, with a further move toward Rs 324 if the breakout holds. On the downside, support is seen around Rs 288, offering buy-on-dip opportunities for positional traders. For prudent risk management, traders may place a stop-loss at Rs 280 to safeguard against any potential downside risk.
Strategy: Buy
Target: Rs 324
Stop-Loss: Rs 280
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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